Dear Friend and Colleague, I am proud to share with you one of the great wins of anybody s legal career. This was the press release on February 23, 2004 from the Department of Justice: United States Attorney Central District of California February 23, 2004 MAN EXTRADITED FROM GERMANY TO FACE CHARGES STEMMING FROM $5.8 MILLION PONZI SCHEME A resident of Spain is scheduled to make his first court appearance this afternoon after being extradited to the United States to face a 10-count indictment that alleges he and a female confederate operated a Ponzi scheme that defrauded approximately 150 victims out of $5.8 million. Ali A. Yawar, a 51-year-old citizen of Afghanistan, is scheduled to make his initial court appearance at 2:00 p.m. in United States District Court in Santa Ana. Yawar arrived in the United States Friday after being extradited from Germany. Yawar was arrested September 18, 2003 at the Frankfurt airport while traveling to Singapore. Yawar s codefendant, Sylvia A. Hermann, 61, of San Bernardino, was arrested in March 2003 pursuant to a criminal complaint, and she remains in custody without bond. United States District Judge Gary L. Taylor, who is presiding over the case, has scheduled a June 1 trial date. The indictment, which was returned by a federal grand jury in Santa Ana in April 2003, alleges that Yawar and Hermann fraudulently collected more than $5.8 million from investors who were told that their money would be invested by Yawar in a "high-yield" investment program in Europe. Between 1998 and June 2000, when the scheme was in operation, investors were promised monthly rates of return of at least 40 percent and as much as 75 percent. Investors were also promised the return of their principal at the end of one year. Once an investor sent funds to Hermann's California bank accounts or to Yawar's Spanish bank account, Hermann and Yawar allegedly caused one or more monthly payments consistent with the promised rate of return to be sent to some of the investors, leading investors to believe that the "high-yield" investment program was legitimate. The appearance of legitimacy caused many of the investors to invest additional money into the program. In reality, the money used to make the monthly payments primarily came from the investors own capital or money received from other investors, not income from any investment.
The indictment alleges that Hermann and Yawar were running a classic Ponzi scheme. The indictment alleges seven counts of wire fraud, each of which carries a maximum possible sentence of five years in prison. In addition, Hermann is charged with nine counts of money laundering, and Yawar is named in three money laundering counts. The maximum sentence for each count of money laundering is 20 years. THIS WAS THE RESULTS TODAY: All fraud charges dismissed. Mr. Yawar was given a sentence of time served. The firm would like to thank Ken Reed, the appointed counsel who worked tirelessly for the two years prior to Mr. Yawar hiring retained counsel. Judge Manuel Real sentenced Mr. Yawar to time served. He was ordered released forthwith from custody. He will be returning to Germany where he was extradited from. When the firm was retained four months, the pre trial offer was nine years plus a multi million dollar fine. Due to careful research and the discovery of a speedy trial issue, the case was fast tracked for trial by surprise and the government and the defense resolved the matter the day of for time served with all fraud charges being dismissed. Mr. Yawar plead to a low grade blackmail count which carried a maximum two years, one year supervised release, and NO FINE OR RESTITUTION. In the four months that the firm had the case they saved the defendant NINE YEARS of his life. Our congratulations go out to his wife and family. This result was truly miraculous. /S Ronald Richards, Esq. Ronald Richards, Esq. www.ronaldrichards.com 310-556-1001 Office 310-277-3325 Fax Mailing Address: P.O. Box 11480 Beverly Hills, CA 90213
USAO/CDCA Press Release http://www.usdoj.gov/usao/cac/news/pr2004/021.html Page 1 of 2 4/4/2007 DEBRA W. YANG United States Attorney Central District of California February 23, 2004 Thom Mrozek, Public Affairs Officer (213) 894-6947 thom.mrozek@usdoj.gov MAN EXTRADITED FROM GERMANY TO FACE CHARGES STEMMING FROM $5.8 MILLION PONZI SCHEME A resident of Spain is scheduled to make his first court appearance this afternoon after being extradited to the United States to face a 10-count indictment that alleges he and a female confederate operated a Ponzi scheme that defrauded approximately 150 victims out of $5.8 million. Ali A. Yawar, a 51-year-old citizen of Afghanistan, is scheduled to make his initial court appearance at 2:00 p.m. in United States District Court in Santa Ana. Yawar arrived in the United States Friday after being extradited from Germany. Yawar was arrested September 18, 2003 at the Frankfurt airport while traveling to Singapore. Yawar s codefendant, Sylvia A. Hermann, 61, of San Bernardino, was arrested in March 2003 pursuant to a criminal complaint, and she remains in custody without bond. United States District Judge Gary L. Taylor, who is presiding over the case, has scheduled a June 1 trial date. The indictment, which was returned by a federal grand jury in Santa Ana in April 2003, alleges that Yawar and Hermann fraudulently collected more than $5.8 million from investors who were told that their money would be invested by Yawar in a "high-yield" investment program in Europe. Between 1998 and June 2000, when the scheme was in operation, investors were promised monthly rates of return of at least 40 percent and as much as 75 percent. Investors were also promised the return of their principal at the end of one year. Once an investor sent funds to Hermann's California bank accounts or to Yawar's Spanish bank account, Hermann and Yawar allegedly caused one or more monthly payments consistent with the promised rate of return to be sent to some of the investors, leading investors to believe that the "high-yield" investment program was legitimate. The appearance of legitimacy caused many of the investors to invest additional money into the program. In reality, the money used to make the monthly payments primarily came from the investors own capital or money received from other investors, not income from any investment. The indictment alleges that Hermann and Yawar were running a classic Ponzi scheme. The indictment alleges seven counts of wire fraud, each of which carries a maximum possible sentence of five years in prison. In addition, Hermann is charged with nine counts of money laundering, and Yawar is named in three money laundering counts. The maximum sentence for each count of money laundering is 20 years. An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty. This case is the product of an extensive investigation by the Federal Bureau of Investigation and IRS-Criminal Investigation.
USAO/CDCA Press Release http://www.usdoj.gov/usao/cac/news/pr2004/021.html Page 2 of 2 4/4/2007 Release No. 04-021 Return to the 2004 Press Release Index. Return to the Home Page
Case 8:03-cr-00079-R United Document States 201 District Filed 04/04/2007 Court Page 1 of 5 Central District of California UNITED STATES OF AMERICA vs. SACR 03-79(A)-R Defendant ALI A. YAWAR S.S.# NONE Residence: Metropolitan Detention Center Mailing: SAME 535 Alameda Street Los Angeles, Ca 90012 ---------------------------------------------------------------------- JUDGMENT AND PROBATION/COMMITMENT ORDER ---------------------------------------------------------------------- In the presence of the attorney for the government, the defendant appeared in person, on: APRIL 4, 2007 Month / Day / Year COUNSEL: WITHOUT COUNSEL However, the court advised defendant of right to counsel and asked if defendant desired to have counsel appointed by the Court and the defendant thereupon waived assistance of counsel. XX WITH COUNSEL Ronald Richards, retained X PLEA: XX GUILTY, and the Court being satisfied that there is a factual basis for the plea. NOLO CONTENDERE NOT GUILTY FINDING: There being a jury verdict of GUILTY, defendant has been convicted as charged of the offense(s) of: Transporting threats in foreign commerce to injure the property of another person, acting with intent to extort money or other thing of value from that person, in violation of Title 18 USC 875(d),2(b) as charged in counts 10 and 12 of the 1st superseding indictment. JUDGMENT AND PROBATION/COMMITMENT ORDER: The Court asked whether defendant had anything to say why judgment should not be pronounced. Because no sufficient cause to the contrary was shown, or appeared to the Court, the Court adjudged the defendant guilty as charged and convicted and ordered that: Pursuant to the Sentencing Reform Act of 1984, it is the judgement of the court the defendant is hereby committed to the Bureau of Prisons to be imprisoned for a term of: TIME SERVED. IT IS FURTHER ADJUDGED that upon release from imprisonment defendant shall be placed on supervised release for one (1) year, under the following terms and conditions: the defendant 1) shall comply with the rules and regulations of the U.S. Probation Office and General Order 318; 2) shall refrain from any unlawful use of a controlled substance, and shall submit to 1 drug test within 15 days of release from imprisonment and at least 2 periodic drug tests thereafter, not to exceed 8 tests per month, as directed by the Probation Officer; 3) shall cooperate in the collection of a DNA sample from the defendant; 4) shall comply with the immigration rules and regulations of the United States and when deported from this country either voluntarily or involuntarily not reenter the United States illegally and although not required to report to the Probation Office while residing outside -- GO TO PAGE TWO -- WH Deputy Clerk
U.S.A. Case V. 8:03-cr-00079-R ALI A. YAWAR Document 201 Filed 04/04/2007 SACR Page 03-79(A)-R 2 of 5 -- CONTINUED FROM PAGE ONE -- PAGE TWO ====================================================================== JUDGMENT AND PROBATION/COMMITMENT ORDER ===================================================================== of the United States, shall, within 72 hours of release from any custody or any reentry to the United States during the period of Courtordered supervision, report for instructions to the U. S. Probation Office located at the United States Court House, 312 North Spring Street, Room 600, Los Angeles, Ca 90012. IT IS FURTHER ORDERED that all fines and costs of imprisonment are waived. IT IS FURTHER ORDERED that defendant pay a special assessment of $200.00, which is due immediately. IT IS FURTHER ORDERED that any remaining counts and/or underlying indictment are dismissed as to this defendant. IT IS FURTHER ORDERED that the defendant shall be delivered forthwith to agents of ICE for determination of his status in this country. In addition to the special conditions of supervision imposed above, it is hereby ordered that the Standard Conditions of Probation and Supervised Release set out on the reverse side of this judgment be imposed. the Court may change the conditions of supervision, reduce or extend the period of supervision, and at any time during the supervision period or within the maximum period permitted by law, may issue a warrant and revoke supervision for a violation occurring during the supervision period. Signed by: District Judge MANUEL L. REAL It is ordered that the Clerk deliver a copy of this Judgment and Probation/Commitment Order to the U.S. Marshal or other qualified officer. Sherri R. Carter, Clerk of Court Dated/Filed: April 4, 2007 By /S/ Month / Day / Year William Horrell, Deputy Clerk In addition to the special conditions of supervision imposed above, it is hereby ordered that the Standard Conditions of Probation and Supervised Release within this judgment be imposed. The Court may change the conditions of supervision, reduce or extend the period of supervision, and at any time during the supervision period or within the maximum period permitted by law, may issue a warrant and revoke supervision for a violation occurring during the supervision period.
Case 8:03-cr-00079-R Document 201 Filed 04/04/2007 Page 3 of 5 The defendant shall comply with the standard conditions that have been adopted by this court (set forth below). STANDARD CONDITIONS OF PROBATION AND SUPERVISED RELEASE While the defendant is on probation or supervised release pursuant to this judgment: 1. The defendant shall not commit another Federal, state or local crime; 2. the defendant shall not leave the judicial district without the written permission of the court or probation officer; 3. the defendant shall report to the probation officer as directed by the court or probation officer and shall submit a truthful and complete written report within the first five days of each month; 4. the defendant shall answer truthfully all inquiries by the probation officer and follow the instructions of the probation officer; 5. the defendant shall support his or her dependents and meet other family responsibilities; 6. the defendant shall work regularly at a lawful occupation unless excused by the probation officer for schooling, training, or other acceptable reasons; 7. the defendant shall notify the probation officer at least 10 days prior to any change in residence or employment; 8. the defendant shall refrain from excessive use of alcohol and shall not purchase, possess, use, distribute, or administer any narcotic or other controlled substance, or any paraphernalia related to such substances, except as prescribed by a physician; 9. the defendant shall not frequent places where controlled substances are illegally sold, used, distributed or administered; 10. the defendant shall not associate with any persons engaged in criminal activity, and shall not associate with any person convicted of a felony unless granted permission to do so by the probation officer; 11. the defendant shall permit a probation officer to visit him or her at any time at home or elsewhere and shall permit confiscation of any contraband observed in plain view by the probation officer; 12. the defendant shall notify the probation officer within 72 hours of being arrested or questioned by a law enforcement officer; 13. the defendant shall not enter into any agreement to act as an informer or a special agent of a law enforcement agency without the permission of the court; 14. as directed by the probation officer, the defendant shall notify third parties of risks that may be occasioned by the defendant s criminal record or personal history or characteristics, and shall permit the probation officer to make such notifications and to conform the defendant s compliance with such notification requirement; 15. the defendant shall, upon release from any period of custody, report to the probation officer within 72 hours; 16. and, for felony cases only: not possess a firearm, destructive device, or any other dangerous weapon. G The defendant will also comply with the following special conditions pursuant to General Order 01-05 (set forth below).
Case 8:03-cr-00079-R Document 201 Filed 04/04/2007 Page 4 of 5 STATUTORY PROVISIONS PERTAINING TO PAYMENT AND COLLECTION OF FINANCIAL SANCTIONS The defendant shall pay interest on a fine or restitution of more than $2,500, unless the court waives interest or unless the fine or restitution is paid in full before the fifteenth (15 th ) day after the date of the judgment pursuant to 18 U.S.C. 3612(f)(1). Payments may be subject to penalties for default and delinquency pursuant to 18 U.S.C. 3612(g). Interest and penalties pertaining to restitution, however, are not applicable for offenses completed prior to April 24, 1996. If all or any portion of a fine or restitution ordered remains unpaid after the termination of supervision, the defendant shall pay the balance as directed by the United States Attorney s Office. 18 U.S.C. 3613. The defendant shall notify the United States Attorney within thirty (30) days of any change in the defendant s mailing address or residence until all fines, restitution, costs, and special assessments are paid in full. 18 U.S.C. 3612(b)(1)(F). The defendant shall notify the Court through the Probation Office, and notify the United States Attorney of any material change in the defendant s economic circumstances that might affect the defendant s ability to pay a fine or restitution, as required by 18 U.S.C. 3664(k). The Court may also accept such notification from the government or the victim, and may, on its own motion or that of a party or the victim, adjust the manner of payment of a fine or restitutionpursuant to 18 U.S.C. 3664(k). See also 18 U.S.C. 3572(d)(3) and for probation 18 U.S.C. 3563(a)(7). Payments shall be applied in the following order: 1. Special assessments pursuant to 18 U.S.C. 3013; 2. Restitution, in this sequence: Private victims (individual and corporate), Providers of compensation to private victims, The United States as victim; 3. Fine; 4. Community restitution, pursuant to 18 U.S.C. 3663(c); and 5. Other penalties and costs. SPECIAL CONDITIONS FOR PROBATION AND SUPERVISED RELEASE As directed by the Probation Officer, the defendant shall provide to the Probation Officer: (1) a signed release authorizing credit report inquiries; (2) federal and state income tax returns or a signed release authorizing their disclosure and (3) an accurate financial statement, with supporting documentation as to all assets, income and expenses of the defendant. In addition, the defendant shall not apply for any loan or open any line of credit without prior approval of the Probation Officer. The defendant shall maintain one personal checking account. All of defendant s income, monetary gains, or other pecuniary proceeds shall be deposited into this account, which shall be used for payment of all personal expenses. Records of all other bank accounts, including any business accounts, shall be disclosed to the Probation Officer upon request. The defendant shall not transfer, sell, give away, or otherwise convey any asset with a fair market value in excess of $500 without approval of the Probation Officer until all financial obligations imposed by the Court have been satisfied in full. These conditions are in addition to any other conditions imposed by this judgment. RETURN I have executed the within Judgment and Commitment as follows:
at Defendant delivered on Defendant noted on appeal on Defendant released on Mandate issued on Defendant s appeal determined on Defendant delivered on Case 8:03-cr-00079-R Document 201 Filed 04/04/2007 Page 5 of 5 the institution designated by the Bureau of Prisons, with a certified copy of the within Judgment and Commitment. to to United States Marshal Date B y Deputy Marshal CERTIFICATE I hereby attest and certify this date that the foregoing document is a full, true and correct copy of the original on file in my office, and in my legal custody. Clerk, U.S. District Court Filed Date B y Deputy Clerk FOR U.S. PROBATION OFFICE USE ONLY Upon a finding of violation of probation or supervised release, I understand that the court may (1) revoke supervision, (2) extend the term of supervision, and/or (3) modify the conditions of supervision. These conditions have been read to me. I fully understand the conditions and have been provided a copy of them. (Signed) Defendant Date U. S. Probation Officer/Designated Witness Date